I believe that using the Erase and Deregister function will return your Touch to its original operating system level (what it had when you bought it). It is in Settings>Device Info.

I don't think this will do what the OP wants. I believe you have to trigger a factory update, which you can do by booting the device and immediately holding the power button until it shuts down, and then repeat 8 times. You should eventually see the screen where it tells you it's restoring the software.

Edit: even if you restore to 1.0.1, your nook will auto-update to 1.1.0 unless you keep the WiFi off at all times.

You could be right. I suggest that Vinegal try my suggestion first (it only takes a few minutes). Then check the operating system number. If it's still the new version, then proceed to do the 2nd suggestion.